Mortgage rates rise above 7% for first time since May
Published On Jan 16, 2025, 12:02 PM
Mortgage rates in the U.S. have crossed the 7% mark for the first time since May 2024. According to Freddie Mac's Primary Mortgage Market Survey, the average rate for a 30-year fixed mortgage has risen to 7.04%, affecting the already sluggish housing market. The increase in rates follows five consecutive weeks of climbing, attributed to the resilience of the economy. This trend puts additional strain on homebuyers and the overall housing market, which has remained stalled as affordability challenges persist.
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The rise in mortgage rates indicates tightening credit conditions for potential homebuyers, likely leading to decreased demand for housing. This situation could impact real estate companies negatively in the short term. Additionally, higher mortgage rates can also amplify economic pressures, potentially impacting consumer spending and related sectors.
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